The demand for high-speed internet access via cable modem is set to drive the number of subscribers up from 27 million worldwide by mid-2003 to 34 million by the end of the year, according to a new forecast from In-Stat/MDR.
Cable operators are particularly enthusiastic about cable modem subscriptions because of the service’s attractive operating margins, says In-Stat.
However, a key objective for operators is to secure more business subscribers (almost 95% of US cable modem users are residential). This is because business users pay more for the service than residential users.
“The business market is proving to be difficult to breach, as incumbent telephone companies continue to provide the lion’s share of high-speed data services to businesses,” says the report.